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Lecture St Gallen University - Future of online Advertising in the Social Web - How Facebook, Google and co change the internet landscape
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Lecture St Gallen University - Future of online Advertising in the Social Web - How Facebook, Google and co change the internet landscape


Internet business, online marketing, Adtelligence, social web, social data, social media, facebook, linkedin, mobile social, convergence, social media market, social commerce

Internet business, online marketing, Adtelligence, social web, social data, social media, facebook, linkedin, mobile social, convergence, social media market, social commerce

Published in Business , Technology
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  • 1. The Future of Online Marketing in the Social WebMichael Altendorf12th, Dec 2011Lecture / University St Gallen
  • 2. Lecture - University St Gallen Agenda 1. About Adtelligence 2. Product Portfolio 3. Market Overview 4. The Social Web 5. Social Commerce 6. Social Data are key 7. Privacy Issues 8. Showcases 9. Questions & Answers /Discussion 10. Further Readings
  • 3. ADTELLIGENCE providesAgencies, Publishers and eCommerce withleading solutions for targeting andanalytics
  • 4. About Us Founded in 2008 Awards 2010 & 2011 Located in Mannheim, Düsseldorf, London Team of 25+ tech- and media experts from e.g. SAP, Google, T-Systems and IBM 1 of 10 Facebook preferred developer consultants in Connected to e.g. Europe Only certified Facebook Advertising provider (API) Performance: Manage terabytes of data Deliver billions of impressions Cloud based solution Simple & efficient scalability Highest security and redundancy
  • 5. ReferencesReferences
  • 6. The Product PortfolioSolutions for the Social Web
  • 7. Product Impressions AdEx & Social DSPConvert &SocialAnalytics Social Targeting & Personalization Engine
  • 8. The Future of Online MarketingData is the New Oil
  • 10. The Online Advertising Market – Figures & ForecastThe outlook is excellent, and social media has the highest growth potential 2009 2010 2011 2012 2013 2014 CAGR Mobile Marketing $391 $561 $748 $950 $1,131 $1,274 27% Social Media $716 $935 $1,217 $1,649 $2,254 $3,113 34% Email Marketing $1,240 $1,355 $1,504 $1,676 $1,867 $2081 11% Display Advertising $7,829 $8,395 $9.845 $11,732 $14,339 $16,900 17% Search Marketing $15,393 $17,765 $20,763 $24,299 $27,786 $31,588 15% Total $25,577 $29,012 $34,077 $40,306 $47,378 $54,956 17% Percent of all ad 12% 13% 15% 17% 19% 21% - spendSource: Forrester
  • 11. Social commerce hashighest growth Rates!Mobile: 27%Social Media: 34%Display Advertising: 17%
  • 12. Online Marketing, eCommerce and SocialThe markets can be considered „crowded“ but with hypergrowthSource:
  • 13. The Market of Tomorrow  The market is consolidating  2012 is the year of M&A  Single tools will become platforms  Older technologies will disappear
  • 14. The online Marketing Value Chain $5.00 CPM $5.00 ($0.50) (CPM) ($2.00) ($0.25) ($0.35) ($1.80) ($0.10) $0.00 Advertisers Agencies Ad Network Data Ad Ad Serving/ Publishers Provider Exchange Rich Media
  • 16. Even in the beginningthe web was about people Communication Services started the digital revolution in the 90ies Mobile Data/internet flatrate will change life of many people around the world The personalized web comes close to the first vision of the internet Communication is everywhere, even your new TV will have Skype Source: Computer History Museum
  • 17. The Social Web market is already No 1 »The Social Web may still be in its early phases, but it is likely to transform the fundamental businesses of the Internet far more rapidly than the » incumbents anticipate. (Accel Ventures – The rise of the social web, 2009)
  • 18. Facebook‘s revenues increase fast "Its early days are unproven fully, but Facebook believes thats the holy grail," observed analysis Kawaja.
  • 19. And Facebook‘s valuation increases even faster (max ~95B) Source:
  • 20. Plattform vs. One Trick Pony Very hard to generate first network effects e.g. Apps with $1 each or typical digital Difficult monetization as it is indirect goods Source: Facebook HACK
  • 21. User ProfileData Data
  • 23. The Social Web MarketTraditional Players from other markets enter and build together with new startups a new market Ad Server Social Vendors Commerce DSP‟s & The CRM Social Marketing SSP‟s Automation Web Market Web & Business Social Intelligence Analytics Social Targeting
  • 25. Single Sign-On & Facebook Connect SOCIAL WEB YOUR WEBSITE
  • 26. Single Sign-On Technologies / Facebook Connect rules the game Which Profile Data are available?
  • 27. What kind of data is available? Consumer Info Data Example Mobile Internet TV Interests - Intent Context GPS Location Store or street location (Main & 1st street) IP address 127.159.456.37 Concurrent media use Net & TV, Mobile & TV, etc Content Mazda review Daypart Lunch Breakfast or weekend shopping Zip code 11932 Calls placed (to who, frequency) Calls to order lunch from deli daily Family plans Family of five, etc Usage patterns (when & where) Uses phone in the car, Internet on the road Type of handset or upgrade Bought an iPhone early, Brand buyer, not price # of e-mails/texts sent/received Sends ~xx texts/day indicates age/engagement Coupon activity Uses coupons for consumer package goods Location patterns Goes to shopping, mall, or restaurant Apps/downloads Downloaded “mint‟ app Purchases Bought TV from Best Shopping cart Considered TV from Content viewing history Frequent News viewer, Recent Auto ShopperIdentity Ads seen/clicked on Clicked on mortgage ad searches Sought: “”Plumber in Portland: Other searches Searched: for “TV reviews”, Used Cars, etc # of unique people called Frequent callers are influencers Device owned Android owner Psychographic segment “Urban Dweller” Registration (address, etc.) Name, address, etcSource: Greg Stuart /Slideshare Confidential 28 28
  • 28. Amazon: Social Shopping with Facebook ConnectSOCIAL SHOPPINGAfter Connecting with Facebook, Amazon gives yourecommendations based on your and your friends publicinformation.For Amazon, knowing which of their Customers knowing eachother would be an extremely powerfull marketing tool.For the Users it can be very helpful to know each othersinterests, e.g. for buying birthday presents or borrow DVDswhich are already bought by friends.
  • 29. ProductHow it works1. Data is captured on SNS2. Targeting in real time3. Matching with the right ad4. Marketing Intelligence to prove the result and recommend audience optimization
  • 30. AdtelligenceCan use all data! Shop Social baskets networks CRM Data data exchanges Adtelligence is 100% compliant with German privacy regulations
  • 32. “If I had to guess, social commerce is the nextarea to really blow up”Mark Zuckerberg (Facebook))“The potential for social commerce today is“infinite”… Every eCommerce site will have toadapt”Bing Gordon (Kleiner Perkins)
  • 33. Vision for 2012Reach 2.5 billion people worldwide with one platform 800 Mio users 120 Bn page views per month 150 Mio users 130 Mio users 400 Mio users 65 Mio users Agencies 600 Mio users 180 Mio users 120 Mio users
  • 34. ADTELLIGENCE build for Social CommerceData is the new business model Advertise Personalize Analyze Automated Optimization on KPI„s Social Audience Reporting Business Enrich Targeting Analytics Optimization Intelligence CRM Data
  • 35. Leveraging the Social GraphShopping is a social Experience Social Single Graph Sign-On
  • 37. Users store different kind of Profile Data
  • 38. Privacy – What is needed for the personalized web? 1. Personal Data  Bullet 1 2. Demographics: Age, Job, Joblevel etc. 3. Interests like Music, Movies, Books, Sports or even Quotations 4. Geo Data like City, Holiday Destination  Bullet 2 5. Friends & Social Graph 6. Acitivities in Groups 7. Wall and Comments  Bullet 3 8. Fotos 9. Specials e.g. Blogs or Videopodcasts after Content OK ( Gmail) 1. Further use of optional User Data only under the terms of data Protection 2. Beside the Data Protection you should respect the State of the User
  • 39. Single Sign-on and Facebook ConnectNew opportunities for online advertising vs. a new challengefor data protectionServices like Facebook Connect, the new graph API, and OpenSocialallow the personalization of offers from outside communities.Two principle distinctions: With user opt-inWith opt-in, the user is asked by an eCommerce shop, for example, whether he (and hisFacebook data) want to log in. If the user agrees, his data is read from Facebook (via theConnect interface). Without user opt-inWithout opt-in, the user‟s personalized data may not be shared. It is possible to usepseudonymous data temporarily, for example gender and age can be used to tailor theonline shop to men or women.Example:The new Facebook Graph API allows the processing of gender or age (no name or email). This only works if the user is logged into Facebook. Sitesuse user data for statical or promotional purposes, but here the respect of the privacy policy is especially important.
  • 40. Conclusion: Transparency is keyNew opportunities for online advertising in social networks offer many benefits, both for platform operators and for users. Amazon andApple, for example, make much use of them. This is precisely why open communication is of particular importance when dealing with userdata. Transparency leads to lasting acceptance.Facebook and Google are dealing primarily with negative headlines in the media because they don‟t tell their users what they are doing.Three scenarios are described:
  • 41. Further InformationFacebook Privacy Policy Privacy Settings on Facebook Privacy - A new Approach!/note.php?note_id=10150441583870301&id=69178204322General Information for Privacy:German Privacy Officiers – check website in your state!BVDW (German association for digital economy) – business sideEuropean Directive on online data protectionSafe Harbour Directive
  • 43. Facebook Login or Sign upFor all WebsitesSocial PersonalizationEnginePersonlized Landing Pagesbased on your facebook profile
  • 44. For eCommerceInterest GraphPersonalizationWhat are your friends buying?
  • 45. For PublishersSocial GraphPersonalizationGet Recommended News byyour social circle
  • 46. ADTELLIGENCE - For a higher ROI ConversionsNew Customers 328% 191% 221% 146% A/B Testing 114% Time:~12 weeks Live data from one of our German eCommerce clients
  • 47. Live ExamplesCONVERGENCE+ mobile & socialwww.rnloewen.deCONVERT+ Social Personalizationwww.europapark.deFacebook Social Searchwww.quirk.liSocial AnalyticsRegister on for Live demo
  • 48. OUTLOOK
  • 49. Opportunities in many areas!The new market: „Social Web“The Market Segment The Product The Business ModelSocial Graph Filtered web through social graph Cost per data, free and indirect via adsInterest Graph Personalized web Advertising, AffiliateLocation Data Couponing Affiliate Augmented Reality Affiliate Yellow Pages 2.0 Ads, couponing, affiliateReal Time Bidding Platforms Transaction based / middle men Ad Exchanges Transaction based / middle menData in General Data Crawlers / Cookie Dropping / Behavioral Sell to Data Exchange, Technology per License Ads Data Exchanges Marketplace, Transaction based Semantic and real time user profile Targeting Technology
  • 50. What to look for in the future Data Driven Advertising Real Time Personalized Content Social Commerce Location Awareness Mobile everywhere
  • 52. THANK YOU!
  • 53. Further ReadingsDie Zukunft des online Marketings im Social Web The Social Webzukunftderonlinewerbungimsocialwebjanuar2011 im Social Web The Future of the Social Web: In Five Erasmediaadvertisingdatenschutzimsocialweb14062010-4505594 New Information Age Social commerce - the trends to watch mmerce_-_the_trends_to_watchAd Networks Keynote Social Commerce: Personalized and Collaborative Shopping Experiences Personalized Web of Social Media Explosion